The cryptocurrency industry recently experienced a substantial reduction in its overall market capitalization as prices plummeted dramatically over the weekend. This drop was particularly notable because bitcoin/buy-bitcoin-levels-to-watch/” target=”_blank” rel=”noopener nofollow”>bitcoinThe leading cryptocurrency by market value, fell below the $60,000 mark on Saturday, August 3. ethereum, the second-largest cryptocurrency, also suffered significant losses, falling below $3,000 and hitting a low of $2,860. This caused other cryptocurrencies to follow suit, with most of them immediately falling into the red.
This volatility is not uncommon in the cryptocurrency space, where prices often fluctuate dramatically in response to various factors. These price swings are often driven by market reactions to recent news or events. In this case, the latest price drops can be attributed to payment plans band bankrupt cryptocurrency lender Genesis Global Capital.
Genesis moves $1.5 billion in cryptocurrencies
Genesis Global Capital, a bankrupt cryptocurrency lender, has finally completed its restructuring and is now in the process of paying off its debt to creditors after three years. crypto-lender-genesis-completes-restructuring-begins-payouts” target=”_blank” rel=”noopener nofollow”>According According to Bloomberg, the lender has now begun giving its creditors an immediate distribution of approximately $4 billion in cryptocurrencies and fiat currencies.
The distribution details indicate that bitcoin creditors will receive 51.28% of their claims, ethereum creditors will get 65.87%, and Solana creditors will get just 29.58% of their claims.
As such, Genesis moved over $1.5 billion worth of bitcoin and ethereum on Friday, triggering a wave of volatility in the market. According to on-chain data from Arkham Intelligence, the firm moved a total of $1.5 billion, which included 16,600 btc (valued at approximately $1.1 billion) and 166,300 eth (valued at around $521.1 million). Notable recipients included billionaire Mark Cuban, x.com/ArkhamIntel/status/1819390407190450307″ target=”_blank” rel=”noopener nofollow”>Who received $19.9 million in ethereum refunds.
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BREAKING: GENESIS MOVES $1.5 BILLION IN btc AND eth FOR PAYMENTS TO CREDITORS
Wallets linked to Genesis Trading have moved 16,600 btc ($1.1 billion) and 166,300 eth ($521.1 million) in the past hour, likely for in-kind payments to creditors.
bitcoin: bc1qmetf6pu6ghr6fv92209sw5x9t5999562t8wmux
eth:… photo.twitter.com/5Jtxqx8mxT
– Arkham (@ArkhamIntel) twitter.com/ArkhamIntel/status/1819375635539616132?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>August 2, 2024
Market reaction
As such, many investors seemed to react to the impending influx of new money by liquidating their holdings, which in turn contributed to a price drop for many already struggling cryptocurrencies. The price drop could also be attributed to repaid creditors deciding to cash out their digital assets after an extended three-year wait, which increased selling pressure and exacerbated the price drop.
The cryptocurrency market experienced a sharp decline, declining by over 5.7% in 24 hours, bringing the market cap down to $2.15 trillion. As noted above, bitcoin fell below the $60,000 mark and ethereum fell below $2,900.
Genesis Global Capital is not the only bankrupt cryptocurrency company that has had to pay its creditors recently. Bankrupt bitcoin exchange Mt. Gox has also been repay your creditors over the past few weeks. The market could continue to react to these large movements of funds as creditors receive their refunds.
Featured image from 123RF, chart from TradingView
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